Kingborough Council is developing the main street of Kingston, Channel Highway to improve the retail and commercial experiences of residents and visitors.
Kingborough Mayor Paula Wriedt said Kingborough Council is concerned about the short-term loss of foot traffic into local businesses.
"Council has been working with local businesses affected by the road closure during the construction and post-construction phase," Cr Wriedt said.
"Council staff have also been helping, using local businesses to cater for events, buying their meals locally and participating in weekly staff group lunches at affected businesses.
"Council has also waived fees and charges for affected food businesses where possible."
At their recent meeting, Kingborough Council approved a one-time compensation payment of $5000 to affected business owners along the Channel Highway who can demonstrate lost revenue.
"This payment is intended to offset the approximate average annual rates amount," Cr Wriedt said.
"Council is working hard to support these businesses, but we also need our community's help.
"All of these businesses are still accessible, and we implore our residents to keep shopping locally throughout the upgrade.
"Work continues on the upgrade, with new footpaths and the southern side of the Highway due to open in the coming days.
"Council would like to thank everyone for their continued patience and understanding during the CBD upgrade along Channel Highway in Kingston."
A question was raised at the meeting regarding what clauses in the contract exist between the construction company responsible for delivering the roadworks and the Kingborough Council that address significant delays in delivering the final outcome.
General Manager Gary Arnold said there have been no significant delays in delivering the construction project.
"However, there are contractual means of managing agreed extensions of time and/or other significant non-delivery of target timeframes," Mr Arnold said.
Further information on the upgrade and the progress of works can be found on Kingborough Council's website.